Definitions

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Nigerian naira

The naira is the currency of Nigeria. The ISO currency code is NGN. It is subdivided into 100 kobo. The symbol for the naira is ₦, which is included in Unicode at code point U+20A6.

The Central Bank of Nigeria (CBN) is the sole issuer of legal tender money throughout the Federation. It controls the volume of money supply in the economy in order to ensure monetary and price stability. The Currency & Branch Operations Department of the CBN is in charge of currency management, through the procurement, distribution/supply, processing, reissue and disposal/disintegration of bank notes and coins.

History

The naira was introduced in 1973, replacing the pound at a rate of 2 naira = 1 pound. This made Nigeria the last country to abandon the £sd currency system. There was a plan to redenominate the naira at 1 new naira = 100 old naira in 2008, but the plan has been suspended.

Coins

In 1973, coins were introduced in denominations of ½, 1, 5, 10 and 25 kobo, with the ½ and 1 kobo in bronze and the higher denomnations in cupro-nickel. The ½ kobo coins were only minted that year. In 1991, smaller 1, 10 and 25 kobo coins were issued in copper-plated-steel, along with nickel-plated-steel 50 kobo and 1 naira. On 28 February, 2007, new coins were issued in denominations of 50 kobo, 1 and 2 naira, with the 1 and 2 naira bimetallic. Some Nigerians expressed concerns over the usability of the N2 coin. The deadline for exchanging the old currency was set at 31 May 2007. The central bank stated that the ½ to 25 kobo coins were withdrawn from circulation with effect from 28 February 2007.

Banknotes

In 1973, the Central Bank of Nigeria introduced notes for 50 kobo, 1, 5, 10 and 20 naira. The 50 kobo notes were last issued in 1989. In 1991, 50 naira notes were issued, followed by 100 naira in 1999, 200 naira in 2000, 500 naira in 2001 and 1000 naira on October 12, 2005.

In 2007, new versions of the 5 to 50 naira banknotes were announced. The 10, 20 and 50 naira will be polymer banknotes, although currently only the 20 naira is made of polymer. The notes are slightly smaller and redesigned.

Currently Circulating Banknotes
1999–2005 Series
Image Value Dimensions Main Colour Description Date of
Obverse Reverse Obverse Reverse Watermark first printing issue
₦100 151 × 78 mm Red and multicolour Obafemi Awolowo Zuma Rock As portrait(s), "CBN", value 1999 1 December 1999
₦200 Blue and multicolour Ahmadu Bello Pyramid of agricultural commodity and livestock farming 2000 1 November, 2000
₦500 Purple and multicolour Nnamdi Azikiwe Off-shore oil-rig 2001 4 April, 2001
₦1000 Purple Aliyu Mai-Bornu, Clement Isong CBN's corporate headquarters in Abuja 2005 12 October 2005
2006 Series
₦5 130 × 72 mm Mauve Abubakar Tafawa Balewa Nkpokiti dancers Central Bank of Nigeria logo, "CBN" 2006 28 February, 2007
₦10 Brown Alvan Ikoku Fulani milk maids
₦20 Green Murtala Mohammed Ladi Kwali
₦50 Blue Hausa, Igbo and Yoruba men and a woman Local fishermen

On the 1000 naira notes, there is a subtle shiny strip running down the back of the note. It is a shimmery gold colour showing 1000 naira. The triangular shape in the middle of the front of the note changes its colour from green to blue when tilted. The main feature on the front is the engraved portraits of Alhaji Aliyu Mai-Bornu and Dr Clement Isong, former governors of the Central Bank of Nigeria.

On the first prints of the 100 naira notes, Zuma Rock was captioned as located in Federal Capital Territory. Since its real location is Niger State, later prints showed the correct location.

Second naira

The naira was scheduled for redenomination in August 2008 (Although this has now been cancelled by President Alhaji Umaru Musa Yar'Adua), with 100 old naira to become 1 new naira. The Nigerian Central Bank has stated that it will make the naira fully convertible against foreign currencies by 2009. Currently, the amount of foreign currency is regulated through weekly auctions, while the Central Bank sets the exchange rate. The naira appreciated against the dollar through 2007 due to high oil revenues. Bank governor Chukwuma Soludo noted the weekly central bank auctions of foreign currency will gradually be phased out, and that the bank would "only intervene in the market as may be required to achieve defined policy objectives"..

Coins

Coins were to be issued in denominations of:

  • 1 Kobo (N.1)
  • 2 Kobo (N.2)
  • 5 Kobo (N.5)
  • 10 Kobo (N.10)
  • 20 Kobo (N.20)

Banknotes

Banknotes were to be printed in denominations of:

  • 50 Kobo (N.50)
  • 1 Naira (N.100)
  • 5 Naira (N.500)
  • 10 Naira (N.1000)
  • 20 Naira (N.2000)

Exchange rate history

This table shows the historical value of one U.S. Dollar in Nigerian naira:

Date Naira per US $ Date Naira per US $
1972 0.658 1990 8.04 (9.30 PM)
1973 0.658 1991 9.91
1974 0.63 1992 17.30 (21.90 PM)
1975 0.616 1993 22.33 (56.80 PM)
1976 0.62 1994 21.89 (71.70 PM)
1977 0.647 1995 21.89 (84.58 PM)
1978 0.606 1996 21.89 (84.58 PM)
1979 0.596 1997 21.89 (84.70 PM)
1980 0.550 (0.900 PM) 1998 21.89 (88-90 PM)
1981 0.61 1999 85.98 (105.00 PM)
1982 0.673 2000 99-106 (104-122 PM)
1983 0.724 2001 109-113 (122-140 PM)
1984 0.765 2002 114-127 (135-137 PM)
1985 0.894 (1.70 PM) 2003 127-130 (137-144 PM)
1986 2.02 (3.90 PM) 2004 132-136
1987 4.02 (5.90 PM) 2005 128.50-131.80
1988 4.54 (6.70 PM) 2006 120-125
1989 7.39 (10.70 PM) 2007 115.50-120

PM = Parallel Market

See also

References

External links

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